minimum-cost schedule

minimum-cost schedule

You are the manager of a project to improve a billing process at your firm. Table 2.7 contains the data you will need to conduct a cost analysis of the project. Indirect costs are $1,600 per week, and penalty costs are $1,200 per week after week 12.
What is the minimum-cost schedule for this project?
What is the difference in total project costs between the earliest completion time of the project using “normal” times and the minimum-cost schedule you derived in part (a)?
TABLE 2.6
PRODUCT DESIGN PROJECT DATA
Activity
Normal Time (days)
Normal Cost ($)
Crash Time (days)
Crash Cost ($)
Immediate Predecessor($)
A

4
1
5,000
8,000
B

5
3
8,000
10,000
C
A
1
1
4,000
4,000
D
B
6
3
6,000
12,000
E
B, C
7
6
4,000
7,000
F
B, C
7
6
4,000
7,000

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